In January 2020, three-month (91-day) Treasury bills were selling at a discount of 1.58%. What was the annual yield? Assume 365 days in a year. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Annual yield 6.44
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- QUESTION THREE A K100, 000 Treasury bill currently sells at 95% of its face value and is 65 days from maturity. Calculate the following for the Treasury bill: the discount yield. the investment yield.Problem 31-11 The International Fisher Effect You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually. Use the approximate international Fisher effect to answer the following questions. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded…QUESTION 1 From Chapter 14: Balloon Payment Financial (BPF) has an inventory conversion period of 45 days, a receivables collection period of 30 days, and a payables deferral period of 15 days. (a) What is the length of the firm’s cash conversion cycle? (b) If BPF’s annual sales are $2.7 million and all sales are on credit, what is the average balance in accounts receivable? (c) How many times per year does BPF turn over its inventory? (d) What would happen to BPF’s cash conversion cycle if, on average, inventories could be turned over 12 times a year?
- 11) What is the annualized investment rate% on a Treasury bill that you purchase for $8000 that will mature in 65 days for $9000Question 1 (Pricing a forward contract with dividends) The current price of silver is $206 per ounce. The storage cost is $1 ounce per year, payable quarterly in advance. Assuming a constant annual interest rate of 9% compounded quarterly, what is the theoretical forward price of silver for delivery in 9 months? Please submit your answer rounded to the nearest integer - for example, if your answer is 19.819.8, round it to either 2020.28. Calculate the purchasing power of $80,000 in 15 years using an annual inflation rate of 6%. Round to the nearestcent.
- D6) Finance Average rate of return or yield on 180-day Government of Canada treasury bills sold on June 18, 2013 was 1.04%. The client sold the $50 000 T-bill after 39 days. What rate of return (per annum) did the client realize while holding the T-bill, if the short term interest for this maturity had risen to 1.13% by the date of sale?Question content area top Part 1 Calculate the percentage return on a 1-year Treasury bill with a face value of $10 comma 00010,000 if you pay $9 comma 764.359,764.35 to purchase it and receive its full face value at maturity.Problem 12 (DSO and Accounts Receivable) James Inc. currently has P750,000 in accounts receivable, and its day sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.
- D6) Finance URGENT!! demonstrate that the effective cost of funds for a $40 million 90-day bank bill issue in April is the forward rate established in June (when 30 August BAB futures are sold at 97.45), rather than the BBSW of 3.05% when the bills are issued in juneQuestion 3b The current price of silver is $30 per ounce. The storage costs are $0.48 per ounce per year payable quarterly in advance. Assuming that interest rates are 10% per annum for all maturities, calculate the futures price of silver for delivery in nine months.Receivables Investment Snider Industries sells on terms of 2/10, net 25. Total sales for the year are $1,800,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 30 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 25th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $